Case Laws on Anticipatory Breach of Contract

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An anticipatory breach of contract occurs when one party notifies the other party that they will not be able to fulfill their obligations under the contract before the performance is due. This type of breach allows the innocent party to terminate the contract and pursue legal remedies for damages incurred.

Several case laws provide guidance on anticipatory breach of contract.

In Hochster v De La Tour (1853), the defendant had hired the plaintiff to be his tour guide for three months, starting in June. In May, the defendant informed the plaintiff that he would not need his services anymore. The plaintiff sued for breach of contract, and the court ruled in his favor, stating that the defendant`s repudiation of the contract was a breach that allowed the plaintiff to terminate the contract immediately and seek damages.

In Avery v Bowden (1855), the defendant agreed to sell a ship to the plaintiff to be delivered by a specific date. Before the delivery date, the defendant notified the plaintiff that he would not be able to deliver the ship. The plaintiff sued for anticipatory breach of contract, and the court held that the defendant`s repudiation constituted a breach that allowed the plaintiff to terminate the contract and seek damages.

In Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007), the defendant had agreed to purchase land from the plaintiff for commercial development. However, before the settlement date, the defendant notified the plaintiff that it would not complete the purchase due to the discovery of contamination on the site. The plaintiff sued for anticipatory breach of contract, and the court held that the defendant had breached the contract by repudiating it before the performance was due, allowing the plaintiff to terminate the contract and seek damages.

In conclusion, anticipatory breach of contract occurs when one party repudiates the contract before the performance is due. Several case laws provide guidance on the legal remedies available for the innocent party. It is essential to consult an experienced attorney when dealing with anticipatory breach of contract to protect your rights and interests.

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